TD Cowen analysts have described the upcoming launch of Bitcoin investment company Twenty One as the most significant validation of Strategy (MSTR)’s Bitcoin treasury strategy to date. Rather than posing a threat, they argue the newcomer reinforces the legitimacy of Strategy’s long-held model.

Twenty One, backed by SoftBank, Tether, and Cantor Fitzgerald, is explicitly designed to hold Bitcoin as its core business asset. Upon launch, it is expected to hold over 42,000 BTC (worth nearly $4 billion), immediately ranking it as the third-largest publicly listed holder of Bitcoin.

While traditional finance logic might suggest this level of competition could threaten Strategy’s market position or capital-raising capacity, TD Cowen analysts Lance Vitanza and Jonnathan Navarrete argue otherwise. "The proposed launch of Twenty One reflects the most meaningful validation of Strategy’s Bitcoin treasury operations to date," they stated, noting that it made them "incrementally more bullish" on MSTR stock.

The analysts believe this new player could convert institutional skeptics into believers in Michael Saylor’s Bitcoin strategy. Moreover, it could increase demand for Bitcoin overall—outweighing any possible impact on MSTR’s cost of capital—and attract more institutional capital into the asset.

“Certainly, this is what Michael Saylor has long advocated,” they added, referencing the Strategy founder’s push for other firms to adopt similar treasury models.

TD Cowen maintained its $550 price target for MSTR and forecast that the company could hold 757,000 BTC by the end of fiscal year 2027, which would represent about 3.6% of Bitcoin’s total supply. If Bitcoin reaches an average price of $170,000 by then, TD Cowen estimates the company’s Bitcoin holdings could be worth $129 billion.

The bullish sentiment is already reflected in the market. Cantor Equity Partners (CEP), the SPAC vehicle for Twenty One, has surged as much as 130% since the announcement, while MSTR stock has remained resilient.

This development signals not only growing confidence in Bitcoin as a treasury asset but also the maturing of institutional strategies around digital currencies, potentially paving the way for wider adoption of crypto treasury models.

— AccGn News Team